Major reforms on cards as companies bill 2016 presented in NA

The Companies Ordinance 2016 has been promulgated through a Presidential Ordinance and has now been laid before the National Assembly as required under Clause (2) of Article 89 of the Constitution of the Islamic Republic of Pakistan.

The Minister said that the Bill has been finalised after extensive consultations with all stakeholders to introduce best international corporate practices in Pakistan. He pointed out that there was a dire need to revamp the thirty two years old Companies Ordinance, 1984, in order to provide an improved competitive legal framework for the corporate sector in Pakistan.

The Finance Minister elaborated that the bill provides maximum facilitation to corporate sector and envisages use of technology at all levels including filing of documents to SECP electronically, supply of documents, information, notices to the members electronically, attending meetings through video link and voting through e-ballot.

The Finance Minister added that the bill aimed to provide protection of interests of minority shareholders and creditors as well as

Dar added that the Bill aimed to provide protection of interests of minority shareholders and creditors as well as encouraged inclusion of independent and non-executive directors in the company’s boards.

The bill also requires real estate companies to provide enhanced protection to investors.